May 12, 2023 [Morning Star]- WTI snapped a three-day winning streak and Brent broke a four-day string of wins on Wednesday, after the Energy Information Administration said U.S. commercial crude inventories rose by 3 million barrels for the week ending May 5. On average, analysts had forecast a decline of 1.8 million barrels, according to a survey by S&P Global Commodity Insights.

Product numbers, however, were more supportive, with gasoline and distillate fuel oil inventories falling by 3.2 million and 4.2 million, respectively.

Implied demand was stronger over the week, driven by gasoline, which increased by 685,000 barrels a day, bringing the four-week rolling average gasoline demand just short of 9 million barrels a day, wrote analysts at ING, in a note.

Meanwhile, commodities and financial markets continue to deal with the fight in Congress over the U.S. debt ceiling, simmering worries over U.S. regional banks and inflation expectations that could see the Federal Reserve maintain an aggressive policy stance, potentially resulting in a deep economic recession, wrote analysts at Sevens Report Research.

“On the charts, we maintain the view that WTI prices are in a broad trading range with support near $67 and resistance near $83, leaving the $75 area as a key, magnetic pivot point that prices are likely to oscillate around,” they wrote.

The Organization of the Petroleum Exporting Countries will release its monthly report later Thursday.

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